Context: The Union Minister for Ports, Shipping and Waterways (MoPSW) recently visited the site of the proposed International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar Island.

• Note: Transhipment is when a cargo or a container is moved from one vessel to another, while in transit to its final destination.

About International Container Transhipment Port (ICTP) Project

• The ICTP is a major infrastructure project that aims to facilitate the transshipment of containers between different ports.

• A transshipment deepwater seaport facilitates the handling of large cargo vessels, featuring a deep water channel and expansive berth areas for efficient loading, unloading, and the seamless transfer of goods between ships at the port.

• The proposed ICTP at Galathea Bay, Great Nicobar Island, is strategically positioned just 40 nautical miles from the International shipping trade route.

• The ICTP aims to become a leading container transshipment port by leveraging its strategic location, natural water depth, and capacity for the transshipment of cargo from nearby ports.

Salient features of the Project

Geo-Strategic

• The islands are critical for maritime security because of their strategic location in the Indian Ocean Region (IOR). 

• Better infrastructure and connectivity will help India enhance its military and naval strength in the islands.

• It Helps India counter China’s ‘String of Pearls’ strategy due to its closeness to the ‘Strait of Malacca’ chokehold.

• Draft – Natural depth of 20m.                        

• Catchment – Potential to capture transhipment cargo from the similar international facilities in the sub-continent and Ports in the proximity including Indian Ports.

Economic Benefits

• India is the third-largest economy in the world with a 7,500 km long coastline

• 95 per cent of the country’s trade by volume and 68 per cent by value moving through maritime transport.

• It will save significant revenue loss, Currently, nearly 75% of India’s transhipped cargo is handled at ports outside India such as Colombo, Singapore etc

Improved Logistics infrastructure

• It will reduce logistics inefficiencies for Indian trade (high logistic cost approx. 14 percent of GDP), improve country’s export competitiveness and create an opportunity for India to become a large hub for Asia-Africa, Asia-US/Europe container traffic trade.

• Several other allied businesses viz. ship chandlery-ship supplies, ship repair, crew change facility, warehousing and bunkering also planned at this Transhipment Port.

• Other Benefits: such as forex savings, foreign direct investment, increased economic activity at other Indian Ports.

• It will also contribute to enhanced logistics infrastructure, employment generation, and increased revenue share.

• The development of this Mega Container Terminal is a part of the holistic development of Great Nicobar Island.

• Humanitarian assistance and Disaster Relief: India could also use these facilities for humanitarian assistance and disaster relief. 

Concerns

• Conservationists have outlined many threats to the ecology — including those to endangered fauna, the feeling of 800,000 trees, and the impact on local tribes (Shompen and Nicobarese).

Maritime India vision 2030

• Maritime India Vision 2030 focuses on four main areas: increasing capacity, creating top-notch Mega Ports, building transshipment hubs in Southern India and updating infrastructure. 

• Currently, India has 5 Major Ports and 2 Non-Major Ports that can handle over 100 million tons per year. India sees an opportunity to establish Mega Ports to compete globally. 

• Three locations – Wadhawan-JNPT Cluster, Paradip Port and Deendayal Port – have been chosen to become Mega Ports capable of handling over 300 million tons per year.

Road Ahead

• Developing the Transhipment hub is a visionary step, which may serve India’s long term strategic and maritime and business interests.